Is the business good?
How good a business is OLED?
Universal Display Corporation earns 15% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
15%
Return on invested capital · cost of capital 9.0% · 5.8 points above what the capital costs: growth creates value
- Operating margin
- 35%
Operating margin · Electronic Components median 9.6% · 12 months to Q1 2026
- Cash conversion
- 1.11×
Cash conversion · 0.71× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −1.0%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 37% |
| FY2021 | 41% |
| FY2022 | 43% |
| FY2023 | 38% |
| FY2024 | 37% |
| FY2025 | 38% |
Details›
- Gross margin12 months to Q1 2026
- 76%
- Operating margin12 months to Q1 2026
- 35%
- Net margin12 months to Q1 2026
- 34%
- Free cash flow margin
- 38%
- R&D as % of revenue
- 23%
- Revenue, trailing twelve months
- $627M
- Free cash flow, trailing twelve months
- $237M
- Net income, trailing twelve months
- $214M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 15%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Electronic Components
Ranks #13 of 23 by Smart Score